Retailers like Costco put a lot of thought into how they design the shopping experience. One interesting aspect is their pricing strategy, which is not just random but has special meanings. For example, prices that end in .99 typically indicate the regular price of an item. In contrast, prices that end in .97 usually mean the item is on clearance. This kind of pricing is a clever tactic to attract savvy shoppers looking for deals.
Interestingly, some items with prices ending in .88 or .00 might have been marked down by managers. This could indicate that they are the last few in stock or perhaps returned items that are still in good condition.
Costco hasn’t officially shared its pricing rules, but many long-time shoppers know about them. This understanding creates a unique connection between the store and its customers. Buyers who can decode these price tags may feel they are getting better deals, which keeps them coming back. In fact, a recent survey showed that 75% of customers believe understanding pricing can lead to smarter shopping decisions.
Retail experts suggest that such strategies build a “price vocabulary” that communicates value to informed buyers. It benefits both sides: shoppers potentially save money while the store attracts repeat business.
Even committed Costco members may have their share of purchases they regret. However, knowing the pricing system can ease the disappointment and keep them happy to return. Thus, Costco’s clever marketing strategy creates a win-win situation for both the company and its customers.
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Costco, Business Insider
